EUR/JPY today broke the support trendline of the 4-hour Triangle chart pattern identified by Autochartist.
Autochartist rates the Quality of this Triangle at the 6 bar level as a result of the sharp Initial Trend (rated at the maximum 10 bar level), strong Uniformity (6 bars) and lower Clarity (3 bars). The Breakout of this Triangle is aligned with the prevailing downtrend visible on the daily and the weekly EUR/JPY charts. Points A and B on the chart below were formed when EUR/JPY corrected down from the powerful resistance zone lying at the intersection of the 38,2% Fibonacci Retracement of the pervious daily downward price thrust which started in March of this year (its strength is reflected by the 10-bar Initial Trend value) and the major resistance level 101.00 (previous strong support which reversed EUR/JPY in October of 2011).
EUR/JPY is expected to continue downward movement toward s Forecast Price 97.12.
The daily EUR/JPY chart below highlights the technical price levels mentioned above:
